FMB vs. ZTAX
FMB (First Trust Managed Municipal ETF) and ZTAX (X-Square Municipal Income Tax Free ETF) are both Municipal Bonds funds. Both are actively managed. Over the past 3 years, FMB returned 3.18%/yr vs 5.01%/yr for ZTAX. Their 0.03 correlation means their historical movements had little consistent relationship. FMB charges 0.50%/yr vs 1.14%/yr for ZTAX.
Performance
FMB vs. ZTAX - Performance Comparison
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Returns By Period
In the year-to-date period, FMB achieves a 0.43% return, which is significantly lower than ZTAX's 3.71% return.
FMB
- 1D
- -0.08%
- 1M
- -1.95%
- 6M
- -0.43%
- YTD
- 0.43%
- 1Y
- 4.66%
- 3Y*
- 3.18%
- 5Y*
- 0.26%
- 10Y*
- 2.03%
- ALL TIME*
- 2.81%
ZTAX
- 1D
- -0.20%
- 1M
- -0.78%
- 6M
- 3.66%
- YTD
- 3.71%
- 1Y
- 9.54%
- 3Y*
- 5.01%
- 5Y*
- —
- 10Y*
- —
- ALL TIME*
- 4.46%
Liquidity Comparison
| Position | Avg. Volume Value (2W) | Avg. Volume Value (1M) | Avg. Volume Value (3M) |
|---|---|---|---|
| $8.44M | $8.53M | $7.75M | |
| $9.06K | $122.06K | $76.67K |
FMB vs. ZTAX - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | |
|---|---|---|---|---|
FMB First Trust Managed Municipal ETF | 0.43% | 3.73% | 1.94% | 4.39% |
ZTAX X-Square Municipal Income Tax Free ETF | 3.71% | -1.02% | 7.98% | 3.74% |
Correlation
The correlation between FMB and ZTAX is -0.15, meaning they have often moved in opposite directions in the past. This relationship can weaken or reverse as market conditions change.
| Correlation | |
|---|---|
Correlation (1Y) Focuses on recent behavior, but can change the most. | -0.15 |
Correlation (3Y) Balances recent behavior with more history. | 0.03 |
Correlation (All Time) Calculated using the full available price history since May 19, 2023 | 0.03 |
The correlation between FMB and ZTAX shifts across timeframes, from -0.15 (1 year) to 0.03 (all time), reflecting how their relationship changes across market environments.
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Return for Risk
FMB vs. ZTAX — Risk / Return Rank
FMB
ZTAX
FMB vs. ZTAX - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for First Trust Managed Municipal ETF (FMB) and X-Square Municipal Income Tax Free ETF (ZTAX). Risk-adjusted metrics are performance indicators that assess an investment's returns in relation to its risk, enabling a more accurate comparison of different investment options.
Values are calculated on a 1-year rolling basis and updated daily. Risk-adjusted metrics are more stable over longer periods — use the period switch above to explore them.
| FMB | ZTAX | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | +1.70 | ||
| Sortino ratioReturn per unit of downside risk | +2.15 | ||
| Omega ratioGain probability vs. loss probability | 1.41 | 1.10 | +0.31 |
| Calmar ratioReturn relative to maximum drawdown | 1.95 | 0.72 | +1.23 |
| Martin ratioReturn relative to average drawdown | 6.46 | 1.48 | +4.98 |
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Drawdowns
FMB vs. ZTAX - Drawdown Comparison
The maximum FMB drawdown since its inception was -14.16%, smaller than the maximum ZTAX drawdown of -15.33%. Use the drawdown chart below to compare losses from any high point for FMB and ZTAX.
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Drawdown Indicators
| FMB | ZTAX | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -14.16% | -15.33% | +1.17% |
Max Drawdown (1Y)Largest decline over 1 year | -2.73% | -11.26% | +8.53% |
Max Drawdown (3Y)Largest decline over 3 years | -4.44% | -15.33% | +10.89% |
Max Drawdown (5Y)Largest decline over 5 years | -14.08% | — | — |
Max Drawdown (10Y)Largest decline over 10 years | -14.16% | — | — |
Current DrawdownCurrent decline from peak | -1.97% | -8.94% | +6.97% |
Average DrawdownAverage peak-to-trough decline | -2.59% | -6.90% | +4.31% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 0.82% | 5.43% | -4.61% |
Volatility
FMB vs. ZTAX - Volatility Comparison
The current volatility for First Trust Managed Municipal ETF (FMB) is 0.88%, while X-Square Municipal Income Tax Free ETF (ZTAX) has a volatility of 6.77%. This indicates that FMB experiences smaller price fluctuations and is considered to be less risky than ZTAX based on this measure. The chart below showcases a comparison of their rolling one-month volatility.
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Volatility by Period
| FMB | ZTAX | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 0.88% | 6.77% | -5.89% |
Volatility (6M)Calculated over the trailing 6-month period | 2.14% | 25.70% | -23.56% |
Volatility (1Y)Calculated over the trailing 1-year period | 2.74% | 32.80% | -30.06% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 3.73% | 28.70% | -24.97% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 4.53% | 28.70% | -24.17% |
FMB vs. ZTAX - Expense Ratio Comparison
FMB has a 0.50% expense ratio, which is lower than ZTAX's 1.14% expense ratio.
Dividends
FMB vs. ZTAX - Dividend Comparison
FMB's dividend yield for the trailing twelve months is around 3.62%, less than ZTAX's 4.61% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
FMB First Trust Managed Municipal ETF | 3.62% | 3.37% | 3.22% | 2.98% | 2.47% | 1.96% | 2.19% | 2.47% | 2.58% | 2.49% | 2.93% | 3.07% |
ZTAX X-Square Municipal Income Tax Free ETF | 4.61% | 4.58% | 4.55% | 2.14% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% |
Frequently Asked Questions
FMB and ZTAX have a correlation of -0.15, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
ZTAX has higher volatility (6.77%) compared to FMB (0.88%). In terms of maximum drawdown, FMB dropped -14.16% vs ZTAX's -15.33%.
On 3-year performance, ZTAX leads with 5.01% vs 3.18% for FMB. On fees, FMB is cheaper at 0.50% per year. On volatility, FMB has been the lower-risk option at 0.88%. The better choice depends on whether you care most about return, fees, risk, or income.
Over the 3-year period, ZTAX has performed better with a 5.01% return vs 3.18%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.
FMB is cheaper with a 0.50% expense ratio, compared with 1.14% for ZTAX.
ZTAX has the higher dividend yield at 4.61%, compared with 3.62% for FMB.
They also come from different issuers: First Trust and X-Square. Their fees differ too: 0.50% for FMB and 1.14% for ZTAX.
FMB currently has the higher Sharpe Ratio (1.94 vs 0.25), meaning it's delivered slightly more return per unit of risk over the trailing 12 months. However, this ranking shifts over time - use the Risk/Return Score above for a more comprehensive view that combines Sharpe, Sortino, and other measures used by quantitative funds.
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